Employee Ownership Foundation

Charting Your Own Future

"We understand that a well managed employee-owned company is not a destination, it is a journey..."

- J. Michael Keeling,
President of The ESOP Association


Approved Budget and Projects 2018

Discussion item: EOF 2018 Approved Budget Projects

At the November 8, 2017 EC meeting the 2018 proposed budget was approved.  The 2018 approved budget is a deficit because of proposed spending increases to implement Brand Audit recommendations.  As of December 31, 2017, cash and investments are over $2M.  Thus, EOF has more money than ever.

As with regard to the Raise-A-Million goal, it could easily be raised to $1.5 million, even with the increase in operations spending, while having a goal that in the bank account always has $100K on hand.

Behind this tab is the EOF 2018 approved budget. 

Set forth below are projects that received approval for funding in 2018.    


Grandfathered Projects:

▪ Kelso Fellowships: The success of this program, including case studies, employee ownership research and dissertations, etc. is due to the fact that this Rutgers University program penetrates academic institutions throughout the nation. Case studies, bios, and interviews with Kelso Fellows are available through links on the Foundation's website to the Foundation for Enterprise Development ("FED") and Rutgers University. In 2017 Kelso Fellows, both new Fellows, and some funding for prior Fellows to expand their initial work was $90K, $85K for the Kelso Fellows and $5K sent for posting a notice in the Academic Journal for Applications for Rutgers Fellowships. $90K was approved for the FY18 budget.

Dr. Joseph Blasi also has announced that the selection committee has recommended and the Dean of the Rutgers School of Management & Labor has now approved five new Louis O. Kelso Fellowships for the year 2017 – 2018. The names and credentials of those Kelso Fellows accompany this report.

▪ Edmunson Scholarships: In FY 2018, funding for the oldest EOF project, the Edmunson Scholarships is proposed to be $24K. Historically, the funding for the scholarships has been $24K for 12 scholarships; $2,000 per scholarship.

▪ January 2018 Mid-Year Kelso Symposium: This Workshop is underwritten by a $25K contribution to EOF by Menke & Associates that is a pass-through to Rutgers. EOF pays overhead for attending Kelso Fellows and not counting the Menke $25K pass-through, EOF should budget up to $45K. To our pleasant surprise, John Menke contributed $45K for the Mid-Year Kelso Symposium. The January 2018 Mid-Year Kelso Symposium occurred on January 14th – 16th, 2018.

▪ General Social Survey ("GSS"): A $45,500 payment for one-fourth of the $182,000 required for employee stock ownership questions to be included in the 2018 quadrennial GSS was made. It is assumed that the year before the survey is done, the GSS will accept questions that are written not by EOF, but by professors at Rutgers, Drs. Joseph Blasi and Douglas Kruse. GSS personnel do at times alter the questions. Dr. Richard Freeman at Harvard University may also help with the development of the questions. The increase in cost of the GSS is due to an expansion of the questions on employee stock ownership.

▪ Beyster Symposium scheduled for June 2018: The Beyster Symposium will be held again in LaJolla, CA. In 2017 EOF budgeted $45K. It is assumed there will be requests for payments to cover overhead of Kelso Fellows who attend the Symposium. EOF budgeted $45K.

▪ Rutgers University School of Management & Labor Relations ("SMLR") Hosting of CasePlace.org (formerly hosted by Aspen Institute's Center for Business Education): The Center, or "CBE" is a section of the Aspen Institute originally hosted CasePlace.org. EOF helped fund caseplace.org through the Foundation for Enterprise Development ("FED"). CBE ceased hosting the site in 2017. FED negotiated with Aspen's Center for Business Education for the site to be transferred, and expanded by the Rutgers' School of Management and Labor Relations ("SMLR"). EOF remitted $5.6K as its share per an agreement to partially fund FED's payment to the Aspen Institute for the transfer of caseplace.org to Rutgers. There may be further payments as the site is improved in 2018. The new URL for caseplace.org is http://smlr.rutgers.edu/content/cleo For final transfer of caseplace.org $10K was budgeted for 2018.

▪ Institute for Employee Ownership at Rutgers School of Management & Labor Relations ("SMLR")("the Institute"): A newly approved project, this project is to help endow the first academic center focusing on the study of employee ownership. The pledged amount is $250K over three years. Rutgers SLMR Dean is very committed to establishing the Institute. The goal is to raise in 10 years a $10 million endowment and to have at least $3 million by year 2020. At the recent EC meeting it was decided that $100K would be pledged in year 2018, $100K in year 2019 and $50K in year 2020.

▪ University of Wisconsin for Oxford University for 2018 Business Fights Poverty Conference: This project is a joint University / Oxford University Conference. Application follows. This program was conducted July 10– 17, 2017, in Oxford, England, which has on its program agenda employee ownership and includes names of U.S. speakers prominent in the employee ownership field. Once again, John Hoffmire requested funding in the amount of $5K for this same program and it was approved. President of EOF Keeling presented at the 2017 Conference.

▪ National Center for Employee Ownership ("NCEO") research project: The NCEO submitted two applications for grants: Proposal #1 – Employee Ownership and Economic Well-Being and Proposal #2 – Finding and Understanding ESOP Potential in the Business Community. Proposal #1 focuses on whether a work force in an employee owned company feels better and performs better has good merit. The EC questioned whether Proposal #2 would reveal factors not already known by the ESOP community. Therefore, the EC decided to grant the requested amount, $12K, for the NCEO proposal #1.

▪ Contingency: This fund covers costs that unexpectedly arise such as unanticipated research and project opportunities. In 2017 the EC budgeted $24K for contingencies. However, it was decided that $60K should be budgeted for 2018. The EC had two grant applications that were received untimely, but wished to review and consider for the 2018 budget projects at the February 2018 EC meeting. The requests are from the Pennsylvania/Delaware State Center and Democracy Collaborative (50 x 50 project). The grant requests are in the amounts of $30K each. Discussion on grant approval for these two proposals is behind Tab #6. Chair Lomele felt that an increase in the contingency budget line to $60K would allow for funding either and/or both of these grant proposals (or possibly neither proposal) should they be approved. Therefore, budgeting $60K for 2018 was appropriate.



UPENN/CEO Project – Meetings’ Overhead: The CEO program, "Leading In An Ownership Setting", was conducted July 9 – 14, 2017 and December 3 – 6, 2017. Both were held in the second half of the year. Revenue for the 2017 programs is $99K as of December 31, 2017, or $33K less than at the same time last year. The 2017 program had 14 registered, but two had to cancel, meaning the 2017 program had 12 attendees compared to 16 in 2016. Expense for the UPenn program to date is $131,903. The 2018 UPenn program is scheduled for July 8th – 13th and November 11th – 14th.

Employee Owners’ Retreat (“EOR”): Marketing is done by both the Foundation "staff" – i.e. primarily Association staff, Dan Marcue, and the Ohio Employee Ownership Center, Kent State University, which provides the primary faculty for the Retreat. The EOR attendance is capped at 50 persons, but recently average attendance has been 20 or even less. Registration fees cover the cost, and any net is shared with the Ohio Employee Ownership Center. Due to declining attendance over the past 5 or so years, as there is a perception, incorrect, that average pay employees can benefit just as much in becoming "owners" in style and practice from attending the successful Association Chapter meetings. It was again decided that only one EOR would be conducted in 2017. The 2016 retreat had 19 attendees. The EOR was conducted again August 2 – 4, 2017 in Downers Grove, Illinois with 23 persons in attendance. Revenue for EOR is $10,405. The expenses for EOR are $11,214 resulting in a loss of $809. Unless there is significant increase or interest, it is not expected attendance will increase in FY 18.


Increase in Operations Costs:

This is spending that has traditionally been budgeted to pay for the independent contractor dedicated to development, and overhead for national fundraising, letterhead, some IT overhead, and so on. The proposed $200K increase in FY18 is to pay for website redesign and/or upgrade, as both the Communications and Brand Audits focused on the Foundation. The conclusion was that the EOF brand was not well known or understood in the ESOP community.

To implement the Audit recommendations, EOF's website, dataset, "looks", will need total revision of its current website, etc., all date ten to fifteen years back at a time when EOF resources were negligible. The Strategic Plan 2015 emphasizes EOF being the prime Association entity for outreach to not only the ESOP community, but to the non-ESOP world, in order to increase employee ownership in America. Per the Strategic Plan 2015, the Communications Audit and Brand Audit included outside review of EOF's standing in the ESOP world and how to increase its appeal. It made recommendations requiring significant modernization of EOF's communications and image in today's world of cyberspace and social media.

The EC agreed with the Brand Audit recommendation. It was realized that if it was determined to change EOF's logo, this should be accomplished prior to changing the website. Cost may vary with issues of "timing" and RFP responses, but the hope is that the redesign will be in the $100K or so range. Redesign of both the EOF logo and website was approved.

Conclusion: Following is the approved FY 18 Budget for EOF, FY 18 projects budget and December 31, 2017 unaudited financials.

Budget Details (.pdf)


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